Nigerians move from salaries to small businesses as digital skills gap widens

“Over the last few years, the workforce in Nigeria has dramatically altered, with many people leaving traditional salary-based professions to start new firms. Experts largely blame the trend on the difficulties of digital illiteracy, which they consider a “silent barrier” to productivity. Entrepreneurship is proving to be a more enticing option than traditional jobs for Nigerians in the changing economy.

Digital illiteracy in Nigeria is not only the inability to use advanced software; it also includes difficulty in doing simple things like using email and filling out online forms. This digital skills gap can be a serious productivity killer, especially for companies that still rely on old manual processes. These types of organisations usually have higher operating costs and lower efficiency. Many of them are wondering about the benefits of learning digital skills.

If you’re not online, you’re missing out on significant market opportunities. Digital skills advocate, Oyewole Aanuoluwa says, “anybody doing business who is not online is leaving so much money on the table." When digital tools aren’t used, you can have bad bookkeeping and speculative planning, which makes life harder for small business owners.

The digital skills gap is more pronounced in low-income groups and communities with inadequate infrastructure, further deepening existing inequalities. Many young Nigerians want to develop digital skills, but inadequate internet connection and a lack of established support systems are barriers. This is concerning from a long-term perspective for economic mobility and growth.

There is an urgent need for digital upskilling, yet many Nigerian companies see training as an expense, not an investment. Aanuoluwa states that “training isn’t an expense. “We have to do it,” he said, noting that in a digital economy, it’s about companies investing in staff development to remain competitive.

The need for digital upskilling is critical, yet many Nigerian organisations view training as an expense and not an investment. “Training is not a cost,” says Aanuoluwa. “We have to do it,” he added, emphasising that in a digital economy it’s about companies investing in staff development to be competitive.

The switch from salary workers to small company owners is a sign of a broader rethink on job stability in Nigeria. Overcoming the barriers to gaining these abilities will be key to empowering individuals and fostering economic growth as digital literacy becomes increasingly critical for success in the modern economy.